Page 145 - ISCDEBK-XI

17.10 Double Entry Book Keeping—ISC XI
Sept. 9 Cash A/c ...Dr. 300
To B 300
(Being the interest and noting charges paid by B in cash)
Sept. 9 Bills Receivable A/c ...Dr. 21,000
To B 21,000
(Being the new bill drawn on B for 2 months)
Nov. 12 B ...Dr. 21,000
To Bills Receivable A/c 21,000
(Being the bill cancelled for renewal)
Nov. 12 Cash A/c ...Dr. 11,000
To B 11,000
(Being the part payment received from B)
Nov. 12 B ...Dr. 400
To Interest A/c 400
(Being the interest charged on B for renewal of the bill)
Nov. 12 Bills Receivable A/c ...Dr. 10,400
To B 10,400
(Being a new bill drawn on B for 2 months)
Dec. 12 B ...Dr. 10,400
To Bills Receivable A/c 10,400
(Being the bill dishonoured due to insolvency of B)
Dec. 12 Bank A/c ...Dr. 4,160
Bad Debts A/c ...Dr. 6,240
To B 10,400
(Being 40% of the amount due from B received on final settlement)
In the Books of B
Dr. A’S ACCOUNT Cr.
Date Particulars ` Date Particulars `
2021 2021
March 31 To Balance c/d 20,000 March 31 By Balance b/d 20,000
2021 2021
July 10 To Cash/Bank A/c 18,000 April 1 By Balance b/d 20,000
July 10 To Discount Received A/c 2,000
20,000 20,000
2021 2021
Aug. 5 To Bank A/c 4,000 Aug. 5 By Purchases A/c 25,000
Aug. 5 To Bills Payable A/c 21,000 Sep. 8 By Bills Payable A/c 21,000
Sep. 9 To Cash A/c (` 100 + ` 200) 300 Sep. 8 By Noting Charges A/c 100
Sep. 9 To Bills Payable A/c 21,000 Sep. 9 By Interest A/c 200
Nov. 12 To Cash A/c 11,000 Nov. 12 By Bills Payable A/c 21,000
Nov. 12 To Bills Payable A/c 10,400 Nov. 12 By Interest A/c 400
Dec. 12 To Cash A/c 4,160 Dec. 12 By Bills Payable A/c 10,400
Dec. 12 To Deficiency A/c 6,240
78,100 78,100

Dr. BILLS PAYABLE ACCOUNT Cr.
Date Particulars ` Date Particulars `
2021 2021
Sept. 8 To A 21,000 Aug. 5 By A 21,000
Nov. 12 To A 21,000 Sep. 9 By A 21,000
Dec. 12 To A 10,400 Nov. 12 By A 10,400
52,400 52,400